MACRO ECONOMIC NEWS

JOYOUS JUNE IS LEADING TO THE ECSTATIC SMILE. WISHING A JUBILANT WEEK AHEAD.

Macro Economic News 15 Jun 2020

European countries ease some border controls after coronavirus lockdowns, but Spain's continued closure, a patchwork of restrictions elsewhere and new ways of working mean pre-pandemic levels of travel are a long way off. Millions of people live in a precarious position one shock away from poverty and the coronavirus crisis could be that shock that pushes them into poverty. In the U.S. and elsewhere, government debt is set to soar this year. Some people thinking about how to pay down the debt are looking at an approach used after World War II: financial repression. Developing economies borrow more despite debt relief initiative while tourism deals lingering blow to global economy. China's May factory output rises less than expected whereas Japan hasn't yet decided to ease entry ban while England's shops back in business as lockdown eased.

Monsoon makes strong start with 31% more rainfall in first 14 days leading to better Kharif sowing in India which is 13 per cent higher due to better weather conditions. India Inc sees asset impairment surge to Rs 1.6 trn as slowdown bites while 42% start-ups, small biz out of funds or in shutdown stage. 

FINANCIAL TIMES

[I]  Developing economies borrow more despite debt relief initiative

[I]  Tourism deals lingering blow to global economy

[I]  Beijing braces for coronavirus second wave as city shuts market

[I]  Spain backs its economy minister to head eurogroup

[I]  White House says jobless benefits ‘disincentive’ for work

[I]  Jakarta to use QE for as long as needed to tackle pandemic

[I]  UK businesses seek swift return to work

[I]  Plea for real transparency in private markets

REUTERS

[I]  China's May factory output rises less than expected

[I]  Japan hasn't decided to ease entry ban, foreign minister says

[I]  England's shops back in business as lockdown eased

[I]  France must seek greater economic independence after virus, Macron says

[I]  Europe starts to reopen borders but no free travel yet

BLOOMBERG 

[I]  Bond Investors Are Facing a Conundrum Over Europe’s Safest Asset

[I]  Britain Poised for Double Dose of Virus-Related Easing: Eco Week

[I]  China Adds Funds to Banking System to Avoid Liquidity Shortage

[I]  Lockdown Limbo for India Bonds as Yields Lulled by Fear and Hopes

[I]  Record Debt Bill Pushes Philippine Firms Back to Bond Market

[I]  Jobless Rate Will Remain Elevated in 2020, Says Fed’s Kaplan

WALL STREET JOURNAL

[I]  Governments May Revisit Postwar Playbook as They Tackle Huge Debts

[I]  Global Economy Faces a Steep Climb to Recover After April’s Historic Dive

[I]  Coronavirus, Economic Toll Threaten to Worsen Black Mortality Rates

[I]  Signs of a V-Shaped Early-Stage Economic Recovery Emerge

[I]  Fed Report Says Virus Shock Has Hit Low-Wage Workers Hardest

[I]  U.S. Consumer Sentiment Rebounded in Early June

[I]  Economy Week Ahead: Central Banks, Industrial Production, Retail Sales

BUSINESS LINE

[I]  Monsoon to stay strong; fresh low in Bay next week

[I]  Passenger cap for tugs could delay crew change at port’s outer anchorage

[I]  Kharif sowing 13 per cent higher due to better weather conditions

[I]  Revisiting chemical pesticide use policy in agriculture

[I]  Petrol price hiked by 59 paise per litre, diesel by 58 paise

ECONOMIC TIMES

[I]  Millions of jobs may have been gone for good

[I]  Centre unlikely to reimpose lockdown

[I]  India's big banking reforms may not happen this FY

[I]  Bengaluru's industry body hails proposed amendment to land reforms law

[I]  FIEO for fastening process of engagement with EU to seal free-trade pact expeditiously

[I]  India not keen to take legal recourse to fix data gaps

[I]  May IIP figures most likely to be negative: Brokerages

[I]  Investors uneasy over RBI stand on round tripping

[I]  Govt unlikely to go for privatisation of PSBs this fiscal

BUSINESS STANDARD

[I]  Safe foot forward: Stepping out still an exercise in caution amid Covid-19

[I]  India Inc sees asset impairment surge to Rs 1.6 trn as slowdown bites

[I]  Covid-19 impact: 42% start-ups, small biz out of funds or in shutdown stage

[I]  Monsoon makes strong start with 31% more rainfall in first 14 days

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 9963;  USDINR DGCX: 76.0725;  DJIA Mini: 25055;  FTSE 100 Fut: 6074;  NIKKEI 225 Fut: 22184;  EUR-USD: 1.1257; Crude Oil (WTI): 35.25;  Gold (Spot): 1728

Best Regards, ARBIND

15 Jun 2020